City & County of San FranciscoOffice of Small Business PresentsSMALLBUSINESSBULLETIN

S E P T E M B E R , 2 0 1 3

Dear Reader,

It has been a year since two devastating fires on Ocean Avenue and in the West Portal neighborhood destroyed several small businesses. Some suffered total losses and others had varying degrees of damage. Many lessons were learned from these tragic incidents but perhaps the most important one is that businesses should be prepared for these unforeseen disasters!

September is National Preparedness Month, a great time to start an emergency plan for your small business or review your existing plan if you already have one. We often hear from small business owners that they don't have time to create an emergency plan. If you could do just two things, we would recommend every business owner 1) back up all your business related data, information, insurance contacts, etc. at an off-site location, and 2) sign up for AlertSF.org for notifications of any emergencies in San Francisco. In this issue of our Small Business Bulletin, you will find many resources to help you be ready when emergency strikes.

• ﻿Mayor Lee Launches New 311 Mobile AppMayor Edwin M. Lee recently launched the new release of the Open311 Platform for the City and County of San Francisco, providing an official SF311 mobile app for the public. This new feature of San Francisco’s 311 Customer Service Center will improve how residents and small business owners obtain information, report problems and track service requests remotely and on-location through their smartphone.

The City and County of San Francisco’s 311 Customer Service Center began providing one-stop city services in 2007, and has since gone on to answer over 15 million calls, in addition to providing convenient online access. Business owners have used 311 to report various problems at their business, such as vandalism or illegal parking.

The new SF311 app allows users to quickly and easily report issues by sending pictures, a brief description and a map-based location. Whether reporting issues such as graffiti, potholes, or street cleaning, the City’s new SF311 app simplifies and streamlines the process, ensuring it routes directly to the appropriate servicing agency for quicker response time. The user can view the status of the case in the app and receive a notification of its completion. The app offers one more way users can communicate with the 311 Customer Service Center for non-emergency City services and information. In addition to being able to talk to a live Customer Service Representative by phone 24 hours a day, 7 days a week, every day of the year in over 170 languages, the public can use Twitter, Facebook, the Web, and now the mobile SF311 app.

• Wind-Down of Existing CA Enterprise Zone Program and Launch of Three Replacement ProgramsIn his January budget, Governor Brown proposed significant reform the Enterprise Zone (“EZ”) program. He characterized it as an ineffective and costly tool. In the May revision to his budget, Governor Brown put forward a sunset of the EZ program, as well as three replacement programs, which he characterized as more targeted and effective. This proposal was presented as revenue neutral. The proposal was narrowly approved by the State Legislature, and Governor Brown signed both pieces of legislation– AB 93 and SB 90 – on July 11th. The legislation is urgency statute, meaning that it takes effect immediately.

Brief summaries of both the wind-down of the existing EZ program, as well as the three replacement economic development initiatives, are below.

Wind-Down of Existing Enterprise Zone Program

• No new EZ credits can be earned after Jan. 1, 2014.
• Businesses have 10 years to claim any unused EZ credits. Or, put another way, you have 10 years to use what you’ve earned before 2014, but you can’t continue to earn new credits after 1/1/2014.

o Note: If you have hired a new employee who might quality for the EZ hiring tax credit, and you have not yet obtained a voucher certificate from the City of San Francisco for that hire, it is strongly recommended that you do so immediately. The legislation is clear that any hires made prior to Jan. 1, 2014 may still be eligible for EZ hiring credits. However, it is unclear as to whether the City of San Francisco may issue voucher certificates after Jan. 1, 2014. As such, it is strongly recommended that you submit voucher applications as soon as possible.

Three Replacement Programs

• New Hiring Tax Credit Program

o Program that offers a credit against State taxes for hiring disadvantaged individuals. Employee must fall in one of the categories below:
 - Unemployed prior 6 months.
 - Unemployed veteran (must be unemployed since return from service).
 - Ex-offenders previously convicted of a felony.
 - Recipient of the Earned Income Tax Credit.
 - Is a recipient of CalWORKs or general assistance.
o Open to businesses located in former EZs as well as areas with high unemployment/poverty. Excludes temporary help agencies, retailers, and food services, unless those businesses have less than $2 million in gross receipts (which means they are a “small business” as defined by the legislation).
o Effective Jan. 1, 2014 through Jan. 1, 2021.
o Must be a net new job created at the business – not just a replacement hire.
o Wage must start at $12/hour. Credit capped at 350% of minimum wage. Employee must work 35 hours/week or more.

• New Sales Tax Exemption Program for Qualified Purchases

o Statewide program that offers a sales tax exemption for the purchase of qualified equipment. This program is very similar to a sales tax exemption enacted in 1993 for small manufacturers.
o Qualified purchases include:
 - Equipment used in any stage of the manufacturing, processing, refining, fabricating or recycling process.
 - Equipment used for research and development.
 - Equipment used to maintain or repair equipment purchased in the two categories above.
o Effective July 1, 2014 through July 1, 2022for businesses statewide, and is not restricted to former EZ boundaries.

• New GO Biz Fund

o Program to establish a one-time tax incentive to encourage companies to relocate or expand in California.
o Named the “California Competes Tax Credit.” Funded by $150 million in fiscal year 14/15; $200 million in each following fiscal year, ending in 17/18.
o Distribution of the credit determined by the California Competes Tax Credit Committee. Committee members consist of the State Treasurer, Director of the Department of Finance and the Director of the Governor’s Office of Business and Economic Development (“GO Biz”).

The City and County of San Francisco has its own programs related to the Enterprise Zone. The Office of Economic and Workforce Development will provide more information on the changes to our local EZ programs as soon as they become available. Click here for more information, assistance and further developments.

• Federal Government Launches One-Stop-Shop on the Health Care Law for Businesses Big and SmallThe federal government recently launched Business.USA.gov/healthcare, a one-stop-shop where employers of all sizes can go for information on the Affordable Care Act.

The new site includes a web-based tool that allows employers to get tailored information on how the health law may affect them based on their business’ size, location, and plans for offering health benefits to their workers next year. From tax credits for small businesses to help make coverage affordable, to measures to help slow the growth of health care costs, there are a variety of ways that the Affordable Care Act can help businesses expand health care coverage and compete.

The site leverages various federal government resources to ensure that business owners get comprehensive health care information and easy-to-use tools, such as a timeline of key implementation dates; information about the SHOP Marketplaces and small business tax credits; and resources to help calculate a firm’s number of full-time equivalent employees or determine if the coverage they already offer meets the law’s minimum value standards. The site will be continuously updated with new or additional information.

The Office of Small Business strongly recommends every small business owner/employer take a webinar on understanding the Affordable Care Act. Click here for more information and to register.

Once you have a good understanding of the Affordable Care Act and how it affects small businesses, you should learn how to purchase health insurance plans in California's health exchange agency, Covered California.

In San Francisco, small businesses with 50 or fewer employees can act as a purchasing pool to buy health insurance through the exchange. The employees will then select from among four insurers: Blue Shield of California, Chinese Community Health Plan, Health Net and Kaiser. The rates will vary by age, residence and other factors. For a 40-year-old worker in San Francisco, the average monthly cost for a midrange policy will be $316. In Alameda County, workers will be able to choose among three insurers for an average rate of $389. The plans go on sale October 1 and coverage begins January 1, 2014.

As part of the law, small businesses with fewer than 50 workers can take part in the new state exchange, though they are not required to. Small businesses don't face penalties for not offering coverage. Businesses with 25 or fewer workers can also qualify for federal tax credits if they buy coverage through the exchange.

Click here for more information on health coverage options for small businesses in California, from Small Business Majority, a national nonpartisan small business advocacy group founded and run by small business owners.

• Disaster Preparedness Month - Lessons Learned and Ways to Protect Your Small Business
It has been a year since San Francisco small businesses on Ocean Avenue and in the West Portal neighborhood suffered tremendous damages to their businesses due to two separate devastating fires. In some cases, businesses were completely wiped out and suffered a total loss.

September is National Preparedness Month and a good time to set up your emergency plan for your business, or review your plan if you already have one. The resources below can help you develop a plan to protect your employees, lessen the financial impact of disasters, and re-open your business quickly to support economic recovery in your community.

Local Resources:
- 72hours.org (http://72hours.org/) - SF DEM personal and home preparedness training
- SF CARD (www.sfcard.org) - Local SF based nonprofit that provides preparedness and business continuity training for small and local businesses as well as non-profits.
- AlertSF (www.alertsf.org) - AlertSF is a FREE text-based notification system for San Francisco's residents and visitors. AlertSF will send alerts regarding emergencies disrupting vehicular/pedestrian traffic, watches and warnings for tsunamis, flooding, and Citywide post-disaster information to your registered wireless devices and email accounts.

Below are some steps to take to better prepare for disasters that could cause business interruption:

- Contact your insurance agent and review your current policy; does it include flood damage? Business interruption? Understand your deductibles.- Back-up computer systems, data/files and keep it off business site.
- Make a photographic or videotape record of your inventory.
- Keep an emergency contact list of your employees, key customers and suppliers.
- Keep records of the following financial documents off business site: bank accounts, financial statements, 3 years of income tax returns, lease agreement, etc.
- Keep cash reserves.
(List courtesy of SBSD)

• ﻿Affordable Care Act Weekly Webinar SeriesLooking for insight about how the Affordable Care Act will affect your small business and your employees? This free webinar series will help you understand key pieces of the law and what you should know about tax credits, cost containment and more. Join us and get the facts you need to know. Click here for more information and to register.

• Training Resources to Help Your Small Business Finances
Understanding the financial aspects of small business ownership is vital, but it can sometimes be overwhelming. So where do you start? Join us in SBA’s Learning Center for insight into loans, taxes, accounting and other financing essentials. Learn what you need to know about small business financing to get your entrepreneurial endeavors on the road to success. Click here for details.

• Client Spotlight: A Tran's Bay Bike Shop
OSB client Tammy Powers owns the first and only bike shop on Treasure Island, A Tran's Bay Bike Shop. Tammy received assistance from OSB counselor, Christian Murdock and sits down with us for our September "Client Spotlight"...

Q: What type of business do you own and what makes you unique?
A: When people ask me what type of business I own, I jokingly tell them, with a bit of seriousness, that I sell time machines. "Use the product that I sell to you and you'll feel like a kid again." Although said more precisely... I own a bicycle shop. My shop is unique for 2 reasons, first: I'm the only bike shop on Treasure Island, and second; mine is the only bicycle shop in ALL of California owned by a male-to-female transsexual. Our slogan is "We Love BIcyclists!"

Q: How was the Office of Small Business involved in assisting you?
A: The Office of Small Business has been involved in helping me in just about everything! I never owned a business in SF before and I never went to business school... so I had tons of questions about what to do and where to go simply in order for me to get started. I'm an excellent mechanic who loves bicycles; and because I'm transforming my gender found it difficult to get hired. So I created my own job and am very thankful to the OSB that they helped me accomplish that.

Q: Top 3 reasons for being a small business owner in SF?
A: The top 3 reasons for being a business owner in SF are: 1. It's one of the greatest cities in the world and the never-ending supply of tourists who visit us are a continous cash flow. 2. The restaurants and entertainment here are second to none. 3. San Francisco warmly welcomes ALL business owners, even those of us who are transforming our gender.

• Family Friendly Workplace Ordinance File No. 130785
Supervisor David Chiu has reintroduced the Family Friendly Workplace Ordinance as legislation on 7/30/13. It will not be placed on the November ballot.

The Family Friendly Workplace Ordinance applies to businesses with 20 or more employees. The key provision of the ordinance provides employees with the right to request a flexible or predictable working arrangement in writing to assist with care giving responsibilities, and to do so without adverse employment actions or interference of the right. The employer has a right to deny a request based on business reasons and must do so in writing. The ordinance requires the employer to post a notice informing employees of their rights and to maintain records regarding compliance of the Ordinance. The Office of Labor Standards Enforcement is authorized to enforce the ordinance as to an employer’s adherence to the procedural, posting, documentation requirements as well as any retaliation action taken against the employee for exercising their right to ask.

The legislative version of the ordinance is the same as the ballot measure ordinance. A hearing date has not been scheduled at the Small Business Commission. Supervisors Malia Cohen, Eric Mar, David Campos, Norman Yee, London Breed, and John Avalos are co-sponsors and it is assigned to the Board of Supervisors Rules Committee.

• Expanding Formula Retail Controls File No. 130788The ordinance is modifying the definition of formula retail and adds to the criteria used for conditional use application and authorization of a formula retail establishment. It does not ban any formula retail. These new definitions apply both to relevant Planning Code Sections 303 and 703– (same as Breed and Farrell)

This ordinance expands the definition of formula retail from eleven or more other retail sales establishments located in the US to anywhere in the world; and adds that any formula retail establishments where fifty percent (50%) or more of the stock, shares, or any similar ownership interest of such establishment is owned by a formula retail use, or a subsidiary, affiliate, or parent of a formula retail use, even if the establishment itself may have fewer than eleven other retail sales establishments permitted or located in the world, requires a formula retail conditional use authorization. (Currently Supervisors Breed and Farrell have introduced legislation applying these criteria to the Hayes Valley and the Upper Fillmore).

The ordinance increases the types of businesses that can be classified as formula retail from 14 to 31; adds to the criteria used to evaluate the concentration of formula retail from the proposed location to include taking an assessment of the number of formula retail establishments within 300 ft. of the proposed location (This is approximately a block to block and half); produce an economic impact report; establishes new criteria for notification and design review to include Written Notice to notification groups, notification area, requires a 45 holding period for all DBI permit applications, notification posting at location is on orange paper, notification of formula retail applications is posted on the Planning Department’s website, and the staff report is made available on the department’s website two weeks before hearing.

Introduced by Supervisor Eric Mar on 7/30/13. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Land Use and Economic Development Committee.

• ﻿﻿Definition of Formula Retail Use for Upper Fillmore Street Neighborhood Commercial District File No. 130753
This ordinance proposes to modify the definition of formula retail for the Upper Fillmore Street Neighborhood Commercial District to include formula retail that is a type of retail sales activity or retail sales establishment and has eleven or more other retail sales establishments located anywhere in the world. Current only United States based locations are counted. The definition of formula retail would also include a type of retail sales activity or retail sales establishment where fifty percent (50%) or more of the stock, shares, or any similar ownership interest of such establishment is owned by a formula retail use, or a subsidiary, affiliate, or parent of a formula retail use, even if the establishment itself may have fewer than eleven retail sales establishments located anywhere in the world. Currently, formula retail establishments require a Conditional Use Authorization to become permitted in the Upper Fillmore NCD. This requirement will remain.

Introduced by Supervisor Mark Farrell. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Land Use and Economic Development Committee.

Special Note: Due to the recent spate of legislation modifying Formula Retail control to specific Neighborhood Commercial Districts, the Planning Department has initiated a review and analysis of the Formula Retail controls to determine what, if any, modifications to the controls need to be made.

• ﻿﻿Business and Tax Regulations Code - Administrative Changes File No. 130784
This Ordinance will amend the Business and Tax Regulations Code. The key points of this ordinance are:
1. Change payments to monthly installment payments rather than prepayments of hotel and parking taxes. Payroll tax will still be in installments through 2017.
2. Eliminates the requirement for annual parking tax bond renewal.
3. Tightens up communication procedures and obligation between Treasurer and Tax Collector and a business/person regarding recomputation, interest, deficiency determinations, and revocation determinations.
4. Interest applies to unpaid penalties but not unpaid fees and interest.
5. A penalty is applied when no tax is file and the Treasurer and Tax Collector determines the tax exceeds $5000.
6. There are penalties for failure to register or update a registration, making misstatements in registration, failure to allow inspection of or to produce records, and failure to file a return.
7. Registration is revocation removing suspending registration.
8. Business Registration provisions to require a copy of the business registration certificate rather than a business tax registration tag be displayed on company vehicles.
9. The Revenue Control Equipment Compliance Fee is due on December 31.
10. Central Market Payroll Tax Exclusion annual affidavit to OEWD by December 31.

Introduced by Supervisor David Chiu on 7/30/13. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Budget and Finance Committee.

• Licensing and Regulation of Massage Establishments and Practitioners File No. 130789
This ordinance amends the Health Code to require massage practitioners licensed by San
Francisco to wear photo identification cards when working; deny Massage Establishment permits to applicants convicted of specified crimes; provides an appeal process for persons denied a Massage Establishment permit; establishes health and safety requirements for all Massage Establishments; to establish penalties for violations governing Massage Practitioners and Massage Establishments; and to require notice of violations be sent to the owner(s) of property where Massage Establishments are located.

Introduced by Supervisor Katy Tang on 7/30/13, co-sponsored by Supervisor David Chiu. It is scheduled at the Small Business Commission on September 9, 2013 and is assigned to the Board of Supervisors Neighborhood and Safety Committee.

• Special Tax Financing Law File No. 130781
This ordinance will amend the Administrative Code Special Tax Financing Law to authorize financing by special tax districts of work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations, and establish certain procedures by which the City can make changes to a special tax district.

Introduced by the Mayor on 7/30/13; Co-Sponsors are Supervisors Katy Tang and Scott Wiener. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Budget and Finance Committee.

• Residential Properties File No. 130790
Ordinance amending the Business and Tax Regulations, Planning, and Police Codes to change the limits of Parking Tax Occupancy Simplification for residential properties by increasing, from 5 to 10, the number of parking spaces residential buildings may rent to non-residents and increasing the gross revenue they may earn from rent from $4,000 to $12,000 per quarter and from $15,000 to $40,000 annually.

Introduced by Supervisor Scott Wiener on 7/30/13. A hearing date has not been scheduled at the Small Business Commission and it is assigned to the Board of Supervisors Budget and Finance Committee.

• Police, Administrative Codes - Alcohol Regulation File No. 130461
This Ordinance would amend Section 21 of the Police Code to prohibit possession of an open alcohol container at an ABC licensed off-sale premises. It would require licensees to post a visible sign at the premises giving notice to the public of this prohibition. It will require the Board of Supervisors to or its designee to obtain a liquor license in areas of overconcentration of liquor licenses. The Ordinance provides that the Board of Supervisors shall not approve a Resolution of Public Convenience or Necessity PCN unless the proposed licensee agrees, in writing, that if the ABC issues an off-sale the license, it will be subject to some conditions. The ordinance provides a list of minimum required conditions, and recommended conditions. The ordinance establishes minimum volume requirements for distilled spirits and wine, a prohibition on sale of single-serve containers of beer or coolers, a requirement that ice be sold only in quantities of no less than 7 pounds per sale, and a restriction on the sale of alcohol for off-premises consumption between the hours of 11 p.m. and 2 a.m.

Introduced by the Supervisor Malia Cohen. It is scheduled at the Small Business Commission on September 23, 2013 and it is assigned to the Board of Supervisors Neighborhood and Safety Committee.

• September Small Business Commission (SBC) Meetings: 9/9, 5:30pm, Room 400; 9/23, 2:00pm, Room 400The Small Business Commission will meet on Monday, September 9 at 5:30PM in Room 400. The Commission meets again on Monday, September 23 at 2:00PM in Room 400. Agendas will be available on the Commission website by the Wednesday prior to the meeting. (Note: 9/9 meeting agenda will be posted on 9/4.)

• SBC Meeting Reminder: October 14, 2013 Small Business Commission Meeting Rescheduled for October 7, 2013 Due to Columbus Day Holiday
Due to the Columbus Day Holiday, the Small Business Commission will reschedule our regularly planned meeting on October 14, 2013 to Monday, October 7, 2013. The meeting will take place at 5:30pm in room 408. Please note that this meeting will not be televised.

Legislation Enacted:

• Interim Zoning Controls - Specific Formula Retail Uses on Market Street, from 6th Street to Van Ness Avenue. Signed by the Mayor August 7, 2013
For 18 months, Market Street from 6th Street to Van Ness Avenue has interim zoning controls for Conditional Use Authorization for formula retail uses, these include: Financial Services, Restaurants, Limited Restaurants, Pharmacies. The applicant shall provide the Planning Department as part of its conditional use application a complete economic impact analysis of the proposed use, prepared by an independent licensed professional.

• Planning Code - Mission Alcoholic Beverage Special Use District and Valencia Street Neighborhood Commercial Transit District. Signed by the Mayor August 7, 2013
The Mission Alcoholic Beverage Special Use District will now allow for grocery stores of any size to obtain new beer and wine liquor license, whereas currently only large grocery stores are allowed this privilege and amend the Valencia Street Neighborhood Commercial District and require a conditional use authorization in order to convert a retail space in the Valencia Street NCD into a restaurant.

*Please contact the Small Business Commission by email at sbac@sfgov.org, or by phone at 415.554.6134 with questions, comments, or feedback regarding legislations and how they affect your small business.

• DPW Contracting OpportunitiesThe Department of Public Works (DPW) announced the launch of a one-stop shop on its website that will make it easier for contractors to search for contracts, bid on projects, find project information, access documentation and track their payments for DPW’s construction projects and professional services. Please click here for details.

• SFO Concessions and LeasesBelow is the San Francisco International Airport’s list of upcoming contracts and concession leases for the fiscal year 2012-2013 (July 1, 2012-June 30, 2013). These contracts and leases will be advertised on the Airport’s and City & County of San Francisco’s Office of Contract Administration’s websites:

• Learn Everything You Need to Know About Contracting with the City and County of San Francisco (FREE WORKSHOP SERIES)
FREE workshops held EACH WEDNESDAY of the month at 30 Van Ness Avenue, Suite 200. Reservations are not required, but highly recommended. Click here for details.

• City and County of San Francisco Contracting OpportunitiesVisit www.sfgov.org/oca and click on Bids and Contracts Database and Required Vendor Forms. Click here to learn how to become a registered vendor and certified Local Business Enterprise.

• WED. 9/4 - Starting a Business in San Francisco
Hear directly from the Office of Small Business. How do you obtain permits? How do you register your business name? Learn what the City can do for you in this one-stop seminar.455 Market Street, Suite 600
San Francisco, 94105
11:00 AM to 12:30 PMClick here to register.

• THU. 9/5, 12, 19, 26 - Free Webinar: The Affordable Care Act and Its Affects on Your Small Business & Your Employees
Looking for insight about how the Affordable Care Act will affect your small business and your employees? This free webinar series will help you understand key pieces of the law and what you should know about tax credits, cost containment and more. Join us and get the facts you need to know. Click here for more information and to register.

You are invited to join in the discussion at the University of San Francisco.

½ Day Workshop Topics: Registration Fee - $69

- Blogging content for search optimization
- Incorporating professional video into your business marketing strategy
- Leapfrog the rebranding of your family business
- Facebook and Pinterest for family businesses

Hear from social media experts and learn what tools will work for you and your business. You'll also walk away with a 90-day action plan to implement social media to grow your business!

Registration includes a copy of the book Market Th!s by Sherry Prescott-Willis, continental breakfast and lunch. Click here for details and to register.

• MON. 9/9 - Entertainment Commission's Health Insurance Workshop
Join the Entertainment Commission on Monday September 9, 2013 from 1:00pm - 2:30pm at the San Francisco Public Library Koret Auditorium for a free workshop discussing important information on how to apply for affordable healthcare.

Millions of Californians will be able to choose affordable health coverage offered through Covered California effective January 2014. Covered California is a new, easy-to-use marketplace where you and your family may get financial assistance to make coverage more affordable. Click here to register.

An introductory course for start-up business owners less than 2 years’ track record, self-employed individuals and/or those who want to explore entrepreneurship.
5小時入門課程*專為有意創業者、希望成為自僱者的人士,及少於2年業績的企業家而設。